ArcelorMittal has acquired a majority stake at Bekaert’s steel tire cord plant in the city of Sumare, both companies announced Wednesday.
Under the terms of the deal, ArcelorMittal will own a 55.5 percent stake at Bekaert’s plant, while Bekaert will own the remaining 44.5 percent stake. ArcelorMittal said the deal is subject to the country’s anti-trust authority, Cade, and both companies will continue operating separately until the deal is approved.
As a result of the deal, ArcelorMittal is expected to strengthen its assets and operations in the tire cord segment, with the production of steel cord and bead wires. Both products are used for the manufacturing of car and truck tires.
In Brazil, both companies operate two other joint ventures: Belgo Bekaert Arames (BBA) and ArcelorMittal Aços Longos Bekaert Artefatos de Arames (BMB).